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Standard XII

Accountancy

Adjustment of Reserves

The balance s...

Question

The balance sheet shows a general reserve of Rs. 50,000 which is to be shared between the partners in ratio at the time of dissolution.

gaining

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sacrificing

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profit sharing

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capital

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Solution

The correct option is C profit sharing
The accumulated surpluses and reserve are past profits. The balance sheet shows a general reserve of Rs. 50,000 which is to be shared between the partners in profit sharing ratio at the time of dissolution.

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Similar questions

Q. X and Y are partners sharing profits in the ratio of 2:1. On 31st March, 2018 their Balance Sheet showed General Reserve of Rs. 60,000. It was decided that in future they will share profits and losses in the ratio of 3:2. Pass necessary Journal entry in each of the following alternative cases:-
(i) If General Reserve is not be shown in the new Balance Sheet.
(ii) If General Reserve is to be shown in the new Balance Sheet.

Q. X, Y are partners sharing profits in the ratio of 2 : 1 . On 31st March, 2018, their Balance Sheet showed General Reserve of ₹ 60,000. It was decided that in future they will share profits and losses in the ratio of 3 : 2 . Pass necessary journal entry in each of the following alternative cases :
(i) If General Reserve is not to be shown in the new Balance Sheet .
(ii) If General Reserve is to be shown in the new Balance Sheet .

Lavanya and Priya were partners sharing profits in the ratio of 2 : 1. Pass journal entries for the following transactions at the time of dissolution firm:

(i) Workmen Compensation Reserve stood Rs 1,50,000 in the Balance Sheet and there was no liability towards Workmen Compensation.

(ii) Workmen Compensation Reserve stood at Rs 1,50,000 in the Balance Sheet and liability in respect of it was ascertained at Rs 90,000.

(iii) Workmen Compensation Reserve stood at Rs 1,50,000 in the Balance Sheet and liability in respect of it was ascertained at Rs 1,50,000.

(iv) Workmen Compensation Reserve stood at Rs 1,50,000. In the Balance Sheet and liability in respect of it was ascertained at Rs 2,00,000.

(v) There was no Workmen Compensation Reserve in the Balance Sheet and firm had to pay Rs 40,000 as compensation to the workers.

Q. Redeemable Preference Shares of Rs. 2,00,000 are to be redeemed at a premium of

10 %

. Balance sheet shows profit Rs. 30,000. General Reserve - Rs. 20,000; Share Premium - Rs. 8,000 and Dividend Equalization fund Rs.50,000. How much fresh capital should be issued in order to comply with the provisions of Sec.80 of the companies act, 1956?

A

and

B

were partners in a firm sharing profit in

4 : 3

ratio. On

1^{s t}

April,2018, they admitted

C

as a new partner. On the date of

C^{'} s

admission, the Balance Sheet of

A

and

B

showed a General Reserve of

R s . 84, 000

and a debit balance of

R s . 8, 400

in the 'Profit and Loss Account'. Pass necessary Journal entries.

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The balance sheet shows a general reserve of Rs. 50,000 which is to be shared between the partners in ratio at the time of dissolution.

The correct option is C profit sharingThe accumulated surpluses and reserve are past profits. The balance sheet shows a general reserve of Rs. 50,000 which is to be shared between the partners in profit sharing ratio at the time of dissolution.

The correct option is C profit sharing
The accumulated surpluses and reserve are past profits. The balance sheet shows a general reserve of Rs. 50,000 which is to be shared between the partners in profit sharing ratio at the time of dissolution.